Sentry, incorporated was started on January 1, Year 1. Year 1 Transactions Acquired $20, 000 cash by issuing common stock Earned S 62, 000 of revenue on account. On October 1, Year 1, borrowed $12, 000 cash from the local bank. Incurred $3,700 of operating expenses on account, Collected $5, 000 cash from accounts receivable Paid $2, 900 cash to pay off a portion of the accounts payable. On December 31, Year 1, Sentry recogrized accrued interest expense. The note had a one-year term and an 8 percent annual interest rate. Year 2 Transactions Collected cash for the remaining balance in accounts receivable. Paid cash to settle the remaining balance of accounts payable. On September 30, Year 2, recognized accrued interest expense. On September 30, Year 2, paid cash to settle the balance of the interest payable account. On September 30, Year 2, paid cash to settle the notes payable. Required: Record the everits for Year 1 and Year 2 in an accounting equation. At the end of Year 1, total the columns to determine the Y
Sentry, incorporated was started on January 1, Year 1. Year 1 Transactions Acquired $20, 000 cash by issuing common stock Earned S 62, 000 of revenue on account. On October 1, Year 1, borrowed $12, 000 cash from the local bank. Incurred $3,700 of operating expenses on account, Collected $5, 000 cash from accounts receivable Paid $2, 900 cash to pay off a portion of the accounts payable. On December 31, Year 1, Sentry recogrized accrued interest expense. The note had a one-year term and an 8 percent annual interest rate. Year 2 Transactions Collected cash for the remaining balance in accounts receivable. Paid cash to settle the remaining balance of accounts payable. On September 30, Year 2, recognized accrued interest expense. On September 30, Year 2, paid cash to settle the balance of the interest payable account. On September 30, Year 2, paid cash to settle the notes payable. Required: Record the everits for Year 1 and Year 2 in an accounting equation. At the end of Year 1, total the columns to determine the Y
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